Japan's investment in India's financial industry reaches record levels.

Japan's record investment in the Indian financial industry highlights the increasingly close business ties between the world's fourth and fifth largest economies. Japan's largest bank, Mitsubishi UFJ Financial Group, completed a $4.4 billion deal at the end of last year by acquiring a portion of a shadow bank in India, making it the largest foreign investment in the Indian financial industry to date. According to Dealogic data, Mitsubishi UFJ Financial Group acquired a fifth of Shriram Finance's shares, part of a record-breaking $8.8 billion investment by Japanese companies in Indian corporate equity in 2025.